Hythe is an Anglo-Saxon word meaning; “landing place” as it acknowledges that Hythe was the first place on this side of the water that one could land dry shod. This was because of a natural feature the “Hythe Hard” a gravel bank extending into Southampton water, uncovered at low tide, and available for landings. The earliest ferryboats were rowed across by strong wherrymen, the journey taking upwards of an hour depending on the state of the tide and weather.

The first mention of a regular ferry occurs when the name Hytheferye appears on Saxton's map of Hampshire in 1575.

The villagers of Hythe were occupied in a mixture of agriculture, fishing and ferrying, they lived around a tidal lagoon with a very narrow entrance through which small boats could pass to moor in the sheltered waters. Over time the lagoon silted up to form what is now known as the Marsh. Hythe High Street was built on the bank between Southampton Water and the lagoon.